Home insurance is your safety net, shielding you, your family, and your cherished possessions from the unpredictable challenges that life can throw your way. Whether it’s a sudden house fire, a break-in, or a water damage disaster, having a reliable home insurance policy can provide you with peace of mind. In Canada, the home insurance landscape is diverse, with a wide range of providers to choose from. To help you make an informed decision, let’s explore the world of home insurance in the Great White North.
Home insurance is a type of property insurance that safeguards your home and its contents from losses and damages. It is also a requirement for most mortgage lenders before they approve your home loan. A typical home insurance policy in Canada covers four primary types of incidents:
Every homeowner’s insurance policy has a liability limit, determining the coverage amount in the event of a covered incident.
Home insurance acts as a protective shield for your home and its contents, covering risks related to theft, loss, or damage to your property, both inside and outside your home. The coverage is tailored to the specific items listed in your insurance policy. Generally, your home insurance policy provides coverage for you and your family members and is divided into two main components: personal property and personal liability. As a homeowner, your policy will extend coverage to your house, its contents, and any outbuildings on your property.
Square One offers customizable home insurance policies that allow you to choose what to insure and for how much. You can personalize your limits, coverages, and deductibles, making it highly flexible. While it offers low insurance costs and an online application process, keep in mind that premiums are non-refundable, and there’s no option for bundling.
Aviva provides a range of homeowners insurance policies, including comprehensive coverage, $1 million personal liability, and optional add-ons. It offers discounts for bundling, claims-free customers, and retirees. However, pricing information for basic plans might require a call or online quote request, and some reviews are less than positive.
Intact Insurance, Canada’s largest home insurance company, offers various coverage options, including house insurance, condo insurance, tenant insurance, and home-based business insurance. You can bundle home and auto policies for savings, but availability of different insurance options varies by location.
CAA, known for car insurance, also offers home insurance covering the physical building, personal belongings, and other structures on your property. CAA offers various discounts, but some customers have reported issues with customer service.
Desjardins General Insurance offers all-risk home insurance for residents of Ontario and Quebec, covering common types of losses and liability. Their mobile app allows convenient policy management, but availability and discount options may be limited.
Economical Insurance provides coverage for various property types and serves clients who have difficulty finding coverage elsewhere. They offer discounts for claims-free or mortgage-free customers, as well as bundle options.
Allstate offers home insurance tailored to homeowners’ needs and offers optional add-ons. Their mobile app simplifies policy management, and various discounts are available. However, some customer reviews have been less optimistic.
Belairdirect serves several provinces and offers two types of coverage: All Risks and Named Perils. They provide savings options, but rates may increase upon renewal.
Johnson Insurance specializes in insurance for Canadian professional associations and affinity groups. They offer comprehensive coverage and discounts for bundling home and car insurance.
The Co-operators offer a range of home insurance policies with bundle savings and multiple ways to get discounts. They provide a mobile app for easy policy management and 24/7 after-hours emergency service.
In addition to insurance companies, Canada’s major banks offer home insurance options to cater to various needs. Let’s take a closer look at what they have to offer:
RBC Home Insurance offers standard and comprehensive policies with options for bundling, deductible reductions, and an anonymous claims advice line.
CIBC Home Insurance provides customizable plans with options such as Identity Theft Assistance and various money-saving discounts.
TD Home Insurance offers basic and enhanced coverage, including eco-efficient rebuild and claim forgiveness, with flexible payment options.
Scotiabank Home Insurance allows customization and bundling, offering discounts for claims-free and mortgage-free homeowners.
BMO offers flexible coverage options and competitive rates, working with insurance brokers to tailor coverage to your needs.
The cost of home insurance can vary widely depending on factors such as the property type, coverage needs, location, and the insurance provider. On average, home insurance in Canada costs around $960 per year. In 2023, the average monthly home insurance rate is $78, with variations by province. Keep in mind that home and mortgage insurance costs have seen a 5.5% year-over-year increase.
To determine the cost of your home insurance, insurers consider factors like the property’s value, age, condition, location, personal property value, and more. They also assess your credit history and offer discounts you may qualify for.
Getting a home insurance quote is a straightforward process. You can request quotes online by providing your zip code and filling out a form. Insurers may ask for information such as the type of insurance you need, when you want the coverage to start, details about your property, and personal information. It’s essential to compare quotes from different providers to find the best coverage for your needs.
While home insurance provides comprehensive coverage, certain events and situations are typically not covered, including:
Home insurance offers significant advantages, including protection for your home, personal belongings, and liability. It provides peace of mind, especially in the face of unforeseen incidents.
However, it can be expensive, with high premiums and hidden costs in the fine print.
To find the best home insurance in Canada, consider the following factors:
While home insurance is not mandatory, it’s highly valuable for homeowners. It offers essential protection for your home, belongings, and personal liability. It ensures you don’t have to pay for repairs out of pocket and provides crucial support in case of unexpected disasters. With rising weather events, home insurance is an investment worth considering to safeguard your family, property, and peace of mind.
